In a significant step toward reshaping public education in Texas, the state Senate on Thursday granted initial approval to an $8.5 billion education funding and teacher pay package, marking what leaders are calling a “historic” bipartisan achievement. The legislation, House Bill 2 (HB 2), reflects a carefully negotiated deal between lawmakers in both the House and Senate and was presented on the Senate floor by Sen. Brandon Creighton (R-Conroe).
“This is the most transformative education plan that Texas has ever seen,” Creighton told fellow lawmakers. “House Bill 2 reflects a conservative, student-centered approach built on targeted investments, not bureaucracy.”
Key Highlights of the Education Package
HB 2 includes sweeping investments across nearly every aspect of Texas’ public education system. The updated plan boosts overall education funding to $8.5 billion — a $500 million increase from earlier versions of the bill. While the base per-student funding known as the "basic allotment" will see only a modest $55 increase, lawmakers have emphasized that the real impact comes from a range of new and expanded funding streams.
Among the most notable additions is a $1.2 billion “fixed-cost allotment,” aimed at helping school districts offset essential operational expenses such as contributions to the Texas Retirement System (TRS), windstorm insurance, utilities, and transportation.
Another major element of the bill is a $3.7 billion allocation for teacher pay raises — the largest such investment in recent history. An additional $500 million has been earmarked for raises for support staff, including bus drivers, custodians, and administrative workers.
Further investments include:
$850 million for special education services
$430 million for school safety enhancements
$243 million for the Bluebonnet Learning curriculum program
$135 million for teacher preparation programs
$433 million to improve reading proficiency
$153 million for career and technical education initiatives
$200 million for public charter schools
$318 million to support small and midsize districts
Broad Support with Some Concerns
The Texas Association of School Boards (TASB) praised the legislation, calling it a significant step forward in supporting schools and students. Lt. Gov. Dan Patrick and House Speaker Dustin Burrows (R-Lubbock) also issued a joint statement highlighting the bipartisan nature of the agreement.
“The amended legislation reflects constructive input from both chambers and parties, and a shared commitment to delivering historic school funding and teacher pay raises this session,” said Speaker Burrows.
Still, not everyone is fully satisfied. Some critics argue the $55 bump to the basic allotment — the main per-student funding metric — is insufficient given inflation and growing demands on schools. On the Senate floor, Sen. Creighton acknowledged those concerns but framed them as a small portion of a much larger funding picture.
“Less than 10 percent of the dollars flowing to our schools are tied to the basic allotment increase. Every district in Texas is a big winner under this plan,” he said.
New Funding Mechanisms
In response to public and legislative feedback, two new funding streams were added through amendments:
The ABC Allotment: Aimed at covering rising costs in transportation, insurance, and the impacts of teacher pay raises on the TRS.
A $500 million support staff retention fund: Specifically allocated for raises to help retain essential non-teaching staff.
The Senate also adopted several amendments Thursday evening, including one that added property and casualty insurance to the ABC allotment, and another that adjusted academic requirements by limiting mandatory math academies to students in kindergarten through third grade.
What’s Next?
With Thursday’s vote, the Senate has advanced the revised HB 2 to third reading, setting the stage for final passage. Further amendments and floor speeches are expected before the bill heads back to the House for concurrence or conference negotiations, if needed.
If passed, the legislation would represent one of the most comprehensive public education investments in Texas history — a signal that despite deep political divides, education remains a unifying priority for state leaders.
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